Home › BBA Marketing › Marketing › Creating Products and Pricing Strategies › What are reference groups?
What are reference groups?
AAll formal and informal groups influencing a buyer
BThe households in one region with the same income
CThe set of firms competing for the same customers
DThe panel of experts a firm uses to test a product
Answer & Solution
Correct answer: A. All formal and informal groups influencing a buyer
1. Reference groups are all the formal and informal groups that influence the buying behavior of a person.
2. A group at work, a club or a student society can all serve as reference groups.
3. Consumers learn by observing how members of those groups consume.
4. They may also use products or brands to identify with or join a group.
5. Income bands, rival firms and expert panels are not defined by their influence on the buyer.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.4 Buyer Behavior_
Related questions
Big data and analytics are used to provide consumers with which two things?Big data refers to which of the following?Database marketing is sometimes given which other name?What does the information in a marketing database help managers do?One-to-one marketing means creating what?What are shopbots?How does online technology help sellers rather than buyers?What effect has the internet had on pricing power?